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Medicare Part B Premium Is Holding Steady Next Year

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The Associated Press

Published: September 20, 2008

WASHINGTON - The monthly premium for the vast majority of the elderly and disabled participating in Medicare will hold steady at $96.40 next year. It's the first time since 2000 that the charge for health coverage is not increasing.

The monthly premium for Medicare Part B covers a portion of the costs for physician services, home health and the purchase of certain medical equipment, such as wheelchairs and oxygen machines. The deductible for those services will also hold steady next year at $135. That's the amount beneficiaries pay before their insurance coverage will kick in.

Officials said next year's freeze is just the fifth time since 1976 that premiums did not increase. However, about 5 percent of the nearly 44 million people in Medicare are subject to a higher premium based on their income. Congress approved higher premiums for wealthier beneficiaries as part of a bill establishing a new drug benefit. The participants affected are those individuals earning more than $85,000 and couples earning more than $170,000. The amount of those premiums will range from $134.90 to $308.30, depending upon the participant's income.

The advocacy group AARP said the premium freeze should not delay lawmakers from making changes to the health care system next year under a new president and Congress.

"The average 73-year-old in Medicare has seen his or her premium double since joining the program. Americans old and young continue to struggle with skyrocketing health care costs," said Nancy LeaMond, an executive vice president at AARP. Medicare also has a program for covering hospital and nursing home care, called Part A. The vast majority of beneficiaries don't pay a monthly charge for that coverage, but they will pay a $1,068 deductible when admitted to a hospital. That charge is an increase of $44 from current levels.

Overall, Medicare is expected to cost more than $500 billion next year.

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